Are Checking Accounts the Same at Credit Unions and Banks?

Although they had offered so many benefits to their members for so long, many credit unions did not begin offering share draft accounts – another name for checking accounts offered by credit unions – until the middle of the 1970s. At the time, these transaction accounts were similar to NOW accounts, interest-earning bank accounts that let customers write drafts against money that is held on deposit. In 1980, the Consumer Checking Account Equity Act formally authorized all federally insured credit unions to offer checking accounts to their members.

FSU Credit Union lets you write an unlimited number of share drafts (checks) on your account, and offers a VISA debit card that can be used for purchases and cash advances at participating merchants and ATMs. FSU Credit Union is also a member of the CU24 ATM network, allowing our members to make surcharge-free transactions at CU24-affiliated ATMs nationwide. We’re also a part of the Co-op Shared Branching network, giving our members direct access to their money at more than 5,000 shared branches across the country. Your account also includes access to online banking, free e-statements and E-Lerts, Overdraft and Courtesy Pay protection services and more.

As an FSU Credit Union member, you can open a checking account any time after opening a share (savings) account. While many banks require a minimum balance to avoid a service charge on their checking accounts, this is not the case for credit unions.

When you’re shopping among financial institutions for a checking or similar account, be sure to compare the schedules of fees and fines: especially those for writing checks, using ATMs and overdrawing your account. Some checking accounts pay interest, depending on your minimum balance. Most institutions pay more interest and charge fewer service fees if you maintain a higher balance in the account. At a credit union, the interest earned on an account is actually your dividends since you are technically an owner. Some checking accounts are dividend bearing.

National surveys indicate that service fees, fines and minimum balance requirements are generally lower at credit unions than most other financial institutions.

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